Albertans shopped more while spending less in 2024, trend expected into the holidays

The day after Remembrance Day is the unofficial start to Christmas at many Edmonton stores.

As festive decorations go up, it represents a critical time for retail, as shoppers are already on the hunt for the perfect gift.

“We really have to make our holidays the best that we can, just because it holds us through when there are some slower months,” said Katrina Petryshyn, the owner of the Makers Keep.

But has there been a shift in what Albertans are putting in their holiday shopping carts?

New data showing generally, people are heading out to stores in person, with an increase in the total transactions. But the amount consumers are spending each time, is down.

“We are no longer seeing that $50 to $100 per transaction, we are seeing $30 to $60 dollars. It impacts us a lot,” said Petryshyn.

Moneris Canada is able to track trends when people tap their credit or debit cards at select machines, showing that the number of total Alberta transactions was up 10 per cent around Christmas in 2023, but the dollar amount spent each time is down seven per cent, and the trend, seems to be holding for 2024.

“Throughout the year it’s been a tale of two trends. Consumers are making more purchases, but each purchase has been a little smaller,” said Peter Goldsztajn, the vice president of corporate data analytics at Moneris in a news release, saying the trends in Alberta are similar across Canada. “In Moneris’ data, we see this through an increase in transaction counts, as high as plus 13 per cent year-over-year in February, and a decrease in the average transaction size at minus six per cent year-over-year in March.”

That belt-tightening is not just in holiday spending.

“In grocery what we’ve seen over the last four years, is the average transaction size staying absolutely level,” said Sean McCormick, the vice president of business development at Moneris, “and that flies completely opposite to everything we are hearing about inflation. What consumers are doing, is they are looking at their budgets and they are saying ‘I have X amount of dollars to spend per month on things like  grocery, and I’m going to make different decisions.’”

Flat consumer spending, still means pressure for business owners dealing with inflation, but not without hope for new business owner Wendy Lien.

“I was a heavy equipment operator for 10 years, and decided it’s time for a change in my life, I thought I would take a chance on myself,” said Lien.

She’s recently opened Magnolia and Mimosas inside the Makers Keep on 124 Street.

Hopeful by starting small, and getting mentorship from Petryshyn, holiday shoppers will notice her business.

“People don’t notice you online until you have that foundation of a store, “ said Lien.

Both business owners are hoping you visit a local store this holiday season.

“Whenever you do come in, even a small purchase like a greeting card, it means the world to us,” said Petryshyn.